Tag Archives: Foreclosure

Fear of Losing Your Home? Bankruptcy Can Help Stop Foreclosure

Owning a home and managing your mortgage can be a difficult task that takes a large amount of financial planning and preparation. If you’ve fallen behind more than three months, your property may be threatened by foreclosure. Foreclosure means that the creditors repossess any property and sell the house at an auction. The profits go to repaying the mortgage, taxes, and any legal fees associated with your foreclosure. Why Bankruptcy? When you file for bankruptcy, the court will issue an Order of Relief to create an automatic stay. This informs any creditors that they must cease collection attempts until the bankruptcy is completed The two options for a consumer bankruptcy are Chapter 7 bankruptcy and Chapter 13 bankruptcy. With Chapter 7 bankruptcy, it may be more difficult to keep your home due to New Jersey exemption rules. On the other hand, a Chapter 13 bankruptcy could be the right choice…
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How Does Bankruptcy Protect Against Creditors?

Creditors can resort to several methods to collect on past due debts. If you fall behind on payments, they may seek a judgment to garnish your wages. Your mortgage lender may also foreclose on your home. These are only two examples of what could happen once you fall far behind enough on your debt obligations. If you have an excessive number of other debts, it can make it difficult or impossible to become current on payments. Bankruptcy is an option that you could consider to temporarily halt collection attempts. A major benefit of filing for bankruptcy is that it issues an automatic stay. This is the mechanism that stops most creditors from taking your assets or pay during your bankruptcy case. Depending on the situation, the automatic stay might stop: Wage garnishments: An automatic stay can stop wage garnishments for certain debts, such as for past-due credit card debt or…
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Wells Fargo to Issue Refunds After its Mortgage Rate-Lock Scandal

Wells Fargo is in the middle of another scandal involving its business practices. According to the bank, it will reach out to 110,000 customers who might have been charged improper “rate-lock extension fees” while finalizing their mortgage paperwork. Wells Fargo will issue refunds to some of these customers. Rate-lock extension fees are what borrowers pay if they miss their mortgage paperwork deadline but still want to keep their quoted interest rate. However, borrowers are only supposed to be charged these fees if they are responsible for missing the deadline. It turns out that Wells Fargo was responsible for the late paperwork filings in some of these cases. Rate-lock extension fees can be costly for borrowers with expensive mortgages. According to Wells Fargo, it assessed $98 million in rate-lock fees for 110,000 customers between September 2013 and February 2017. The bank believes it will issue less than $98 million in refunds…
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Foreclosure Law Protects You From Price Gauging

Recently, a foreclosure agency called Castle law group in Colorado was sued for over $16million by the state for malpractice and making unjust profits. Their main competitor was sued for the same reason, and subsequently put out of business 2 years ago. These companies cannot charge as much as they want, there are laws for consumer protection and fair debt collection practices. Many foreclosure firms do follow the law, so do some research on what foreclosure rates should be in your area. If you still feel like you are being overcharged, keep reading below to see if contacting a foreclosure law expert is the best decision for you. Questions to Ask Your Lawyer About Foreclosure: What constitutes an unjust profit? Laws on consumer protection and debt collection exist throughout the country and differ state by state. Your local attorney will know the foreclosure laws specific to your region. Can you communicate…
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